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Facilities Management
in Hong Kong
Past, Present & Future
Presentation to
The Hong Kong Institute of Facilities Management
September 23rd, 2000
Philip Lo
Planex Ltd.
Architectural background From design to management Facilities Management through
Technology Established HK practice - June 92 Established HK IFMA Chapter -
November 92
Background
Prior to 70’s non professional
70’s Changing Business Climate:the emergence of the white collar workers,the advent of the computer technologythe turning point of Industrial Society to Information Age,
i.e., manual work to computerised work; new tools, new skills, new space requirements
Formation of FMI (Facility Management Institute)founded by Herman Miller, Inc. in 1979,new approach in managing the work process and workplace, paving the way for the establishment of IFMA.
HistoryUS PerspectiveThe Beginning: Late 1970’s
1980 First FM degree program, Cornell UniversityFormation of the National Facility
Management Association (NFMA)1982 First FM magazine: Facilities Design &
ManagementNFMA name changed to International Facility
Management Association (IFMA)First Facilities Day at NeoCon, Chicago.
1989 MIT founded the International Society of Facilities Executives (ISFE)
BOMI Institute offered the first professional designation for facility managers: the
Facility Management Administrator (FMA)
FM Growth in the 80’sHistoryUS Perspective
Depressing 80’s lead to Booming 90’s
ReengineeringWaves of global corporate downsizing,Dramatic changes in corporate culture &
environment, OutsourcingAdvancement of information Technologies
phenomenon
HistoryUS Perspective
Prior to 70’s non professional
70’s Changing Business Focus:Focused on Maintenance & Repair of BuildingsPromoted by Building Surveying Profession
80’sFormation of BIFM (British Institute of Facilities Management)
Impact of Technology and changing economy
HistoryUK PerspectiveThe Beginning: Late 1970’s
80’s Depression focus on cost reduction
downsizing and more efficiencies
1989Management buy out of Facilities Department of IBMFormation of Procord , later acquired by Johnson ControlsFormation of Johnson Controls IFM
90’s Proliferation of Outsourcing Contracts and Service Providers
Present PFI - Private Financial Initiatives - Mega projects for long term management contracts
HistoryUK PerspectiveThe Changes: Late 1980’s to Now
HK HK
USUS
UKUK
Workplace, Space & Asset Management
Operations + MaintenanceManagement
PropertiesManagement
EstatesManagement
FM in Hong Kong
A Brief History - pre 1997 Non profession in 1980’sFormation of IFMA in Hong Kong in
November 1992Early adoption by Universities & Hospitals &
Multi-NationalsCity University - change dept. name to FMO1995 Establishment of Graduate Degree
programme at Polytechnic University1997 - Asian Economic Downturn
HistoryHK Perspective
A Brief History - post 97Downsizing, cost reduction, out-tasking
outsourcingDramatic changes in economic climate &
business environmentOutsourcing by private, then public
organizations pProperty Management Firms embrace FMEstablishment of Undergraduate Degree programme
by City UniversityFormation of HKIFM
HistoryHK Perspective
So what is it?
Property Management?
Maintenance Management?
Estates Management?
Same old Wine in
New Bottles?
Facility Management?
DefinitionFacilities Management is the
practice of coordination the
physical workPlace with the
People and the Process of
the organization. It integrates
principles of business
administration, architecture
and the behavioural and
engineering sciences.
Facility Management
PEOPLEPLACE
PROCESS
CorporateReal Estate
Facility Facility ManagementManagementLong-range and
Annual Planning
Maintenanceand Operations New
Construction and Renovation
Architectureand
Engineering
Interior SpacePlanning and Space
Management
Security,Telecommunicationsand Administrative
Services
FinancialForecasting and
Management
FM ModelThe
The Primary FM Competency Areas(As Defined for the CFM Program)
Human & EnvironmentalFactors
Real Estate
Planning & ProjectManagement
Facility Function
Finance
Quality Assessment &Management
Communication
Operations & Maintenance
TheEight
CompetencyAreas of
FM
Plans & ControlsPlanning ExpensesCapitalAssetsMeasurements
Space ManagementSpace StandardsSpace AllocationSpace InventorySpace ForecastingSpace Utilisation Moves & Installation
Operations &Maintenance
Preventive Maintenance
SecurityIndoor Air Quality (IAQ) LandscapingEnergy ConservationHousekeepingWaste ManagementEnergy ManagementEmergency OperationsExecutive Services
Real EstateAcquisitionDispositionSite SelectionLeasing & Contracts
A&E ServicesEngineeringArchitectureInterior DesignFurniture DesignConstruction MgmtProject Management
Scope Facility Management
Outsourcing
Source: The Outsourcing Institute
Logistics
Properties / Real Estate
Information Technology
AdministrationHuman Resources
Customer Services, Finance Marketing & Sales, Transportation
Logistics
Properties / Real Estate
Information Technology
AdministrationHuman Resources
Customer Services, Finance Marketing & Sales, Transportation
2001US$318B
1996US$100B
Bank of America Chase Manhattan Bank CWHKT Cathay Pacific HSBC HACTL Housing Authority
How satisfied are you?
What is important to you?
What can be improved?
How to improve?
OutsourcingIn Hong Kong
Exterior Maintenance Interior Maintenance Building Maintenance Building Services Workplace Design Indoor Air Quality Elevators
How satisfied are you?
What is important to you?
What can be improved?
How to improve?
FM Customer Satisfaction
Th Future of
Facilities Management
Th Future of
Facilities Management
FM 2000 & Beyond Core Business Oriented Competency Based Customer Driven Quality Driven Technology Driven Networked Structure
OutsourcedStrategic Partnership
Strategic (Financial) Boardroom Level / Professionalism
FutureFacility Management
PROCESS
PEOPLEPLACECool Living
Gen Y workforcede-Aging of CEOs
New Org StructureNew Economy
Outsourcing
Smart BuildingSmart Space Smart Tech
Future of Facility Mgmt
Impact of IT on FMImpact of IT on FM• FM becomes Information Management
• Accessible by all, anywhere,anytime,anything
Internet enables Facilities Management Information available anytime, anywhere, about anything
The Next Generation of
FM Professionals
• Competency in multi facets - technical skills, financial skills, communication skills,
• Strategic vs. Operational
• Proactive vs.Reactive
• Global vs. Local
• Quality and Customer driven
• Must embrace and utilise technology
• Cannot resist change
Evolution of FM
• 2000 & beyond• Are
you ready?
Trends & ChallengesInternal:• Outsourcing is Business as Usual• Downsizing continues• Efficiency and Productivity• Value-based services• Asset Performance
External:• Mergers & Acquisitions• De-Regulations• Compliance Issues• Environmental Issues• Technology: web-based
What Does This Mean to Your Profession?